Wal-Mart in Trouble, Yet Again

The worldâs largest private employer is feeling the heat for myriad reasons. All you ever hear about Wal-Mart these days is a plethora of criticisms. From their shortcomings in providing adequate healthcare for employees, to Wal-Martâs effect on the environment, to the adverse effects on the communities where Wal-Marts open — weâve heard it all. From a legal perspective, at present there are a slew of lawsuits pertaining to discrimination and violation of wage & labor laws.
Over 50 members of Congress have asked that Wal-Mart disclose information about its wages for Congressional review to assess whether gender biases in wages exist. In September 2006, a class-action suit was filed against Wal-Mart contractors concerning sweatshop conditions at their overseas sites. Aside from Wal-Martâs practices abroad that allow the retail conglomerate to have such competitive prices, there are plenty of domestic concerns to discuss that are raised on a regular basis. Last week proved no exception. On February 6, the United States Court of Appeals for the Ninth Circuit affirmed the district courtâs decision in Dukes v. Wal-Mart, certifying a class action suit against Wal-Mart alleging sexual discrimination under Title VII of the 1964 Civil Rights Act.
A case that began with six female Wal-Mart employees in June 2001 has the possibility to become the largest civil rights case in history. The plaintiffs allege that Wal-Mart discriminates against women in wages and promotions. The class, which is the single item in contention, includes all women employed at any Wal-Mart since December 1998, âwho have been or may be subjected to Wal-Martâs challenged pay and management track promotions policies and practices.â This case covers at least 1.5 million women in approximately 3,400 stores, making this case monumental.
Evidence supporting the plaintiffâs case that women are not getting the same pay for the same work & are getting fewer promotions is convincing. According to Richard Drogin, the statistical analyst hired by the plaintiffs, it takes women an average of 4.38 years from the date of hire to be promoted to assistant manager, while it takes men 2.86 years. The average salary of a female manager is $89,280, compared to $105,682 for male managers. For workers receiving an hourly wage, women make 6.7% less than men in comparable positions. Additionally, Wal-Martâs total workforce consists of 72% women, yet women hold only 33% of its managerial positions. Ninety-two percent of Wal-Martâs cashiers are women, but only 14% of store managers are women. These figures are most certainly striking.
The women filing suit against the worldâs largest retailer are hoping that the case will go to trial, and so am I. Employers in this nation have gotten away with discrimination in employment for far too long.
– Layla Moughari, IWPR Research Intern